HERSHEY COMMUNITY CENTER

Transcription

1 HERSHEY COMMUNITY CENTER Revised October 5,

2 POTENTIAL HERSHEY COMMUNITY CENTER OVERVIEW ABOUT THE COMMUNITY CENTER Since our recreation center was built in 1963, our community and its recreation needs have grown. The new Hershey Community Center is the vision of our residents. It will serve us and generations to come. The center will provide additional recreational and social opportunities. It will give residents of all ages more room to swim, participate in classes, hold community meetings and enjoy socializing together. It will also provide a home for our local senior center and offer expanded programs for our students after school. Planned amenities include: walking track, fitness opportunities, a full-size basketball gymnasium, a child watch area, indoor leisure pool with zero-entry and active play components, a senior center, teen area, meeting rooms, outdoor leisure pool, large multi-purpose room, kitchen space, and a refreshment area. An indoor 50-meter pool will allow for much-needed additional swimming space and aquatics programming for residents. It s important to note that the current Hershey Recreation Center has a 50-meter pool outside. In the new facility, the 50-meter pool will be moved inside to allow for year-round use by residents and use during competitions, which will generate revenue for the center. We listened to residents and results of a needs analysis to shape the key components of the new facility. This document provides an overview of the process, the timeline, the funding options, and answers to frequently asked questions

3 POTENTIAL HERSHEY COMMUNITY CENTER PLANNING PROCESS TIMELINE CURRENT FACILITY 1963 The current facility was built in 1963 by The Hershey Chocolate Company and run by the M.S. Hershey Foundation until it was sold to Derry Township in Now, 55 years later, liabilities and limitations include: Costly challenges to maintain failing equipment he HVAC system, pool equipment and retractable dome T are mechanically obsolete The 6-lane indoor pool is not meeting the needs for lap swim, competitions and aquatic classes Outdated and unattractive showers Maintaining a clean, mold-free environment is a challenge Safety risks involving the retractable dome PLANNING BEGINS 2014 MARKET ANALYSIS 2015 CONCEPTUAL PLAN 2016 OCTOBER 2014 A Stakeholders Committee was established to begin the process of planning for a new community center. Phase 1 Consulting Services commenced with Ballard King Associates which included a market analysis, two community listening sessions (Nov. 4 & 19, 2015) and the establishment of a preliminary program for the facility based on the input collected. The firm of Kimmel Bogrette Architecture + Site was secured to provide the next phase of planning which was the development of the conceptual plan for the community center

4 TIMELINE OPERATIONS ANALYSIS 2017 JUNE 13 The Board of Supervisors authorized Ballard King Associates to conduct an operations analysis looking at various options and combinations of program elements to identify both operational revenue and expenditure projections. PUBLIC MEETING 2017 JUNE 27 A public meeting was held to present the planning process for the new center and receive public input. PUBLIC WORKSHOP 2017 OCTOBER 16 A public workshop was held and Ken Ballard presented the Operations Analysis Report. APPROVAL GRANTED BUILDING PROGRAM FINALIZED PLANNING SESSIONS HELD BEGIN SCHEMATIC DESIGN PHASE SURVEY CREW ON-SITE 2017 NOVEMBER Approval was granted to secure a funding stream for engineering and consulting service through. In addition, authorization to proceed with the schematic design was granted. JANUARY 23 The building program was finalized with the decision to construct a 50-meter pool as part of the project. JANUARY 24 Two kick-off planning sessions were held to discuss both the Senior Center design and aquatic design with the applicable consultants. JANUARY 31 A kick-off meeting was held with the Civil Engineer (RGS) to begin the Schematic Design Phase. FEBRUARY 5 The survey crew was on-site to begin collecting site data. FUTURE BORROWING HEDGE CONTRACT FEBRUARY 13 The Board of Supervisors authorized the township s financial team to prepare documents to lock in interest rates at today s level for a future borrowing for the project. MARCH 13 The Board of Supervisors approved a hedge contract to lock in interest rates. SCHEMATIC DESIGN May 8 The Schematic Design was presented to the Board of Supervisors and the public and the Supervisors approved the request to proceed to the design development phase. CAPITAL CAMPAIGN SUMMER The $5 Million Capital Campaign begins

5 PROJECTED DESIGN & CONSTRUCTION SCHEDULE DETERMINE CONCEPT TO BUILD JANUARY COMPLETE FINAL DESIGN AND BUDGET VERIFICATION AUGUST COMPLETE CONSTRUCTION DOCUMENTS FALL PROJECT BIDDING EARLY START CONSTRUCTION SPRING 2019 REC CENTER/POOLS CLOSED 2020 OPEN DOORS MAY

6 POTENTIAL HERSHEY COMMUNITY CENTER WHY $32 MILLION? INCREASING AGE & COSTS CURRENT FACILITY Rec Center is over 55 years old Maintenance costs are astronomical $733,000 per year to operate RENOVATION $11 MILLION Does not include a senior center The cost to renovate the existing building Does not address the shortage of water time or needed recreational programming space for our residents A SHORT-TERM FIX THAT DOES NOT MEET THE NEEDS OF OUR COMMUNITY $27.7 MILLION The cost to build a new building and 25-yard pool NEW BUILDING Community listening sessions revealed what our residents needs are in a new Community Center If a new facility is to be built, it needs to meet the needs of our community

7 $27.7 $32 MILLION 25 YARD POOL 50 METER POOL A study of operational costs of a new facility with a 25-yard pool and a 50-meter competitionsized pool were compared. A 50 meter pool would actually result in the lowest operating deficit of approximately 517,000 to 589,000 PER YEAR PROJECTED 50 METER POOL = LOWEST OPERATING DEFICIT This will potentially open up economic development funding sources that will help pay for the incremental cost from 27.7M to 32M. This is due in part to the plan to host regional swimming meets

8 HERSHEY COMMUNITY CENTER FUNDING THE COMMUNITY CENTER POTENTIAL SOURCES OF FUNDS ESTIMATED COST: $32 MILLION The current funding strategy includes the mix below: CAPITAL CAMPAIGN The capital campaign will reduce bond financing to $27 million. BOND FINANCING Annual debt service will be approximately $1,100,000 incrementally over 20 years. THE $1,100,000 DEBT SERVICE MAY COME FROM: TAX INCREASE Taxes may need to be increased incrementally to approximately.576 mills to generate $1,100,000 per year..576 MILLS $250K 5 MILLION 27 MILLION For a home assessed at $250,000, this would cost an additional $ PER YEAR in property taxes. OTHER SOURCES OF FUNDS THAT WOULD MINIMIZE THE TAX INCREASE: Derry Township administrators, financial consultants and the Board of Supervisors continue to work together to secure funding solutions from a variety of sources that will help minimize the financial impact on the taxpayer. In addition, the Township continues to review its annual budget to plan for the future so that services are not compromised because of a major investment in the community center

9 HERSHEY COMMUNITY CENTER FREQUENTLY ASKED QUESTIONS FAQ 1 HAS THERE BEEN A FEASIBILITY STUDY DONE ON THE NEW RECREATION CENTER? Ballard King Associates, a nationally-recognized recreation center planning consultant based in Colorado, was engaged in 2016 and has been collaborating with the Township ever since. Their engagement started with a Feasibility Study and Market Analysis which were used to perform an Operation Analysis in The Operational Analysis was used as the basis to develop the detailed Business Plan specific to the final design of the building. Ken Ballard, lead principal with Ballard King Associates, presented the Operational Analysis at a public meeting in October of The draft of the Business Plan document was completed in September of and will continue to be modified for months to come. The Business Plan projected that we would go from a current annual operating loss on the existing Recreation Center of $733,000 to an operating loss of between $517,000 and $589,000 with the new Community Center. 2 HAS THE TOWNSHIP BENCHMARKED OTHER FACILITIES? Throughout the entire process the Township has considered the successes and failures of other facilities, both by visiting other facilities and by working with consultants who have specialized expertise in working with countless facilities across the nation. It is important to realize that the goal of this facility is not to make a profit or even break-even; the goal is to minimize the operating deficit each year. Community Centers are a government service and almost always operate at a deficit

10 FAQ 3 WILL THERE BE A SUBSTANTIAL TAX INCREASE TO FUND THE NEW COMMUNITY CENTER? Based on the latest calculations and assuming we hit our goals relating to the Capital Campaign fundraising for the project, the estimated total maximum tax increase is around mills. (For a home valued at $300,000 and assessed at $250,000, this equates to an additional $144 per year, or $12 per month) This could be implemented over several years as opposed to a one-time increase. Additionally, there is a strong chance that this maximum millage could be decreased if other revenue enhancements that the Township is exploring become fruitful. It should also be noted that the Township may consider other tax increases in future years to fund other Township initiatives or may choose to avoid future tax increases by exploring other revenue enhancement or expense reductions. The millage increase over the next 7 to 8 years that has been mentioned is merely one projection if corrective measures and prudent budgeting are not performed. The Township will work together annually with its financial advisors to make corrective measures to minimize or avoid future tax increases. 4 IS THERE A SERIOUS EFFORT TAKING PLACE TO SOLICIT FUNDS FROM BUSINESSES, INDIVIDUALS AND FROM THE KEY STAKEHOLDERS INCLUDING THE HERSHEY AQUATICS CLUB, THE MOHLER SENIOR CENTER AND THE SCHOOL DISTRICT? Yes. A very robust capital campaign has been launched and details can be seen at hersheycommunitycenter.org. We are very encouraged by the level of support that is being generated for the project. Discussions with donors are ongoing and commitments will be announced in the coming months. 5 WHAT IS THE CURRENT TOWNSHIP DEBT? The total net nonelectoral debt outstanding as of the Series of Official Statement was $9,958,110. The total net nonelectoral and lease rental debt as of the Series of Official Statement was $22,593,110. This includes the debt that the township issued through the ICDA for the municipal building and the fire station loan

11 FAQ 6 HOW MUCH DOES THE TOWNSHIP PAY ANNUALLY TO SERVICE ITS DEBT? The total debt service that the Township pays annually is shown in the table below: FISCAL YEAR TOTAL TOWNSHIP DEBT SERVICE 12/31/ 2,148,668 12/31/2019 2,162,120 12/31/2020 2,308,130 12/31/2021 2,317,476 12/31/2022 2,310,356 12/31/2023 2,107,831 12/31/2024 1,901,425 12/31/2025 1,250,564 12/31/2026 1,252,567 12/31/2027 1,244,828 12/31/2028 1,189,620 12/31/ ,871 12/31/ ,345 12/31/ ,461 12/31/ ,501 12/31/ ,754 12/31/ ,959 12/31/ ,506 12/31/ ,460 12/31/ ,154 TOTAL 23,358,593 7 WHAT IS THE BORROWING CAPACITY OF THE TOWNSHIP? As of the last calculation done for the Series of Official Statement, the Net Nonelectoral and Lease Rental Debt Limit was as follows: Legal Limit: $60,110,421 Outstanding Debt: $22,593,110 Remaining General Obligation Capacity: $32,977,905 Remaining General Obligation and Lease Rental Capacity: $37,517,

12 FAQ 8 WHAT IS THE STATUS OF DEBT THAT WAS TAKEN ON TO FUND THE NEW FIREHOUSE? The Township incurred this debt, but the Fire Department is paying it. The Derry Township Industrial Commercial Authority (DTICDA) owns the building, the Fire Department is the Lessee until the debt is paid off by the Fire Department. The Fire Department has raised all but $1,450,300 of the approximate $7,000,000 it cost to build the new station and continues to cover all the Township s debt service on the outstanding balance of the loan. 9 WHAT IS THE STATUS OF ANY DEBT THAT HAS BEEN INCURRED FOR IMPROVEMENTS DOWNTOWN? In, $2,900,000 was borrowed from the Dauphin County Infrastructure Bank (DCIB) at a very attractive rate to fund improvements to Governor Road between Cherry Drive and Fishburn Roads, Chocolate Avenue and Stauffers Church Road. 10 WHY ISN'T THERE A REFERENDUM TO LET THE VOTERS DECIDE? While this may sound like the fairest option, voter turnout in Derry Township is historically low. In fact, only about 4,500 Derry Township residents out of more than 17,000 registered voters voted in the last general election. That puts the decision into the hands of a relatively small number of people. If all long-term capital expenditures were put to a vote, most likely residents would not approve funds for bridges, parks, government buildings, etc. Our residents are educated and well-meaning but they are not involved in the daily operations of the township and are not familiar with the details of this project or others. It s unwise to put this major decision that impacts our community today and for decades up to a vote, when those few who do vote have not worked on the project strategy and analysis as the administration and elected officials have for several years. The Supervisors are charged with doing what is best for the longterm future of Derry Township and often times voters may not be taking future generations into account when they cast their vote on a project